Washington DC - President Donald Trump's former lawyer, Todd Blanche, took a key step towards becoming the nation's top law enforcement officer after a Senate panel approved his nomination to head the Department of Justice.

The 12-10 vote on Tuesday in the Senate Judiciary Committee was along party lines and came after two Republican senators dropped their opposition to Blanche's nomination.

Blanche's Senate confirmation had been held up by concerns from senators John Cornyn and Thom Tillis over a $1.8 billion fund for alleged victims of politically motivated prosecution and a tax audit immunity deal with the Republican president.

Blanche issued a written order over the weekend scrapping the so-called "anti-weaponization fund" and said the audit immunity agreement with Trump, his two eldest sons and the Trump Organization would only apply "retroactively" to past tax years and not future filings.

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The full Senate, where Republicans hold a majority, is expected to vote later this week to confirm Blanche as US Attorney General. He has been serving as acting attorney general since Trump fired Pam Bondi in April.

Senate Democrats have been united in their opposition to Blanche over concerns he has treated the DOJ as an extension of Trump's legal team.

Blanche has also come in for criticism from victims of Jeffrey Epstein over his handling of investigative files about the convicted sex offender – a former close friend of Trump.